Knowing the benchmark is half the problem. Actually paying an Indian employee from a US, UK, or EU entity, with PF, TDS, professional tax, and state-specific labour registrations handled correctly, is the other half. Foreign employers solve it one of four ways.

1. Employer of Record (EOR). A local provider legally employs your Indian hires, runs payroll, deposits PF and taxes, and administers benefits while you direct the work. It is the fastest compliant route, live in days rather than months. Our complete EOR guide covers the model and our EOR benefits breakdown covers when it wins.
2. PEO / co-employment. Closer to shared HR responsibility, generally suited to companies that already have or plan an Indian entity. The EOR vs PEO distinction trips up most first-time buyers, and pricing models differ too; see our guide to PEO service costs and our end-to-end PEO in India guide.
3. Own subsidiary. Full control, maximum setup time (3 to 6 months), and ongoing compliance overhead. It makes sense beyond roughly 20 to 30 employees, at which point graduating from an EOR is a well-trodden path.
4. Contractors. Fast and cheap until misclassification risk catches up. Indian authorities look at control and exclusivity, not the label on the agreement. For ongoing full-time work, contractor arrangements are a liability dressed as a saving.

Provider choice matters as much as model choice, because fees range from $99 to $599+ per employee per month and India-specific expertise varies wildly. We have published independent reviews of the major options, including Remunance (India specialist), Wisemonk (India-focused, $99/month), Deel, and Remote, plus a full Deel alternatives comparison and a ranked list of international PEO providers in India. If payroll is the only thing you need help with, payroll outsourcing or broader HR outsourcing may be the lighter answer.